Applied Materials (AMAT) Shares Dip Despite Earnings Beat and Solid Outlook
Applied Materials (AMAT) saw its shares decline in after-hours trading despite reporting fourth-quarter earnings that surpassed analyst expectations. The semiconductor equipment Maker posted earnings per share of $2.17, edging out the consensus estimate of $2.11. Revenue, however, slipped 3.5% year-over-year to $6.8 billion, still topping forecasts of $6.68 billion.
Segment performance showed Semiconductor Systems revenue at $4.76 billion, Applied Global Services at $1.625 billion, Display at $355 million, and Other at $60 million. Management's guidance for Q1 2026 projects revenue of $6.85 billion (±$500 million) and adjusted EPS of $2.18 (±$0.20), both slightly above expectations.
Wall Street maintains a Moderate Buy rating on AMAT, with 17 Buy recommendations, nine Holds, and one Sell. The tempered market reaction suggests investors remain cautious despite the positive results and outlook.
